International Trader - Asia

Is HSBC Overvalued?

Why HSBC's stock appears overpriced to some investors.

IT'S TOUGH TO CONVINCE A CRITIC. This became evident when HSBC Holdings unveiled first-half results last week, which beat expectations by a huge margin.

For the first half, HSBC's profits rose 25%, to $4.1 billion. On a cash basis, which excludes goodwill amortization, profits rose 26%, to $6.9 billion. Among the big contributors to profit were Grupo Financiero Bital of Mexico, purchased last year, and...